I'm using a compliance checklist to review the Bank's early program disclosures for HELOCs. The checklist is from ICBA (produced by RSM US LLP). One of the points it is asking me to review is does the early disclosure note that the index and margin may be changed if the original index is no longer available.

Is this statement still required under 1026.40(d)?

If it is still required, can you please provide a site?

While you are free to explain it in the early disclosure, there is no specific requirement to do so.

Official Interpretation
40(a) Form of Disclosures
40(a)(1) General

Comment 3. Segregation of disclosures. i. While most of the disclosures must be grouped together and segregated from all unrelated information, the creditor is permitted to include information that explains or expands on the required disclosures, including, for example:

A. Any prepayment penalty.

B. How a substitute index may be chosen.

C. Actions the creditor may take short of terminating and accelerating an outstanding balance.

D. Renewal terms.

E. Rebate of fees.

Thank you Randy!!! That is what I was looking for!